Clutter running out of cash, sells itself at steep discount, The Information says

Late last month, the CEO of storage and moving startup Clutter emailed some of the company’s investors to say the firm was in dire straits, as the company had essentially run out of cash, The Information’s Natasha Mascarenhas reports. To stay alive, it struck a deal to be sold for pennies on the dollar to Iron Mountain, the author says. Existing investors in the company won’t get their money back, according to two people with direct knowledge of the matter. “With our cash reserves projected to run out by June 30, 2023, we ran a process for alternative sources of equity, estimating that we needed at least $20m to fully fund the business,” chief executive Rahul Gandhi wrote in the note, which was viewed by The Information. But the company wasn’t able to raise the money, triggering a senior lender to declare a default and schedule an auction of its assets, according to the email.